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Reports Malaysia

Malaysia stock market and companies daily report (August 08, 2014)

August 8, 2014, Friday, 05:28 GMT | 00:28 EST | 08:58 IST | 11:28 SGT
Contributed by Shares Investment

Pelaburan Mara Increases Stake In BHS

- Pelaburan Mara Bhd (PMB) has acquired a 9.7 percent stake in BHS Industries, increasing its stake to 18 percent.

- This is in line with PMB’s plan to diversify BHS away from its printing business and into renewable biomass and property development ventures.

- This would allow PMB to play a crucial role to help accelerate BHS expansion plans. However, PMB would only hold an equity stake and not get involved in the management of the company.

Significance: The investment is part PMB’s strategic investment as it claims that green technology is a high potential sector and BHS was an opportunity for them to participate, as BHS is going to become a green technology player and a property developer in the long term.

KNM Unit Bags US$1b Sinopec Project

- KNM Group’s subsidiary, KNM Process Systems, has been selected as the sub-contractor for a US$1.3 billion project that Sinopec Engineering Group Co secured from PRPC Refinery And Cracker.

- The project involves the engineering, procurement, construction and commissioning of an oil refining and petrochemical engineering project at the Pengerang Integrated Complex in Johor Bahru.

- Sources indicate that KNM’s slice of the project could be worth between US$300 million (RM963 million) and US$360 million.

Significance: Maybank Investment Bank Research noted that it is reviewing its RM1 target price for KNM and expects the latter to bag US$1 billion worth of contracts from the Petronas’ Refinery and Petrochemical Integrated Development project over three years.

Peter Lim Launches MGO For TMC Shares

- Singapore billionaire Peter Lim has launched a mandatory general offer (MGO) for the remaining 40.8 percent of TMC Life Sciences at RM0.48 per share and RM0.08 a warrant.

- This was triggered by his acquisition of an additional 26.6 percent stake in TMC Life Sciences from Tan Sri Vincent Tan.

- However, Peter Lim intends to maintain the healthcare provider’s listing status on Bursa Malaysia. Shares in TMC were last traded at RM0.465 on 7 August.

Significance: Peter Lim claims that he will inject his planned 200-bed hospital at Iskandar Malaysia’s medical hub into TMC eventually. It has also been speculated that this acquisition could allow Peter Lim to park all his healthcare assets in Malaysia under one vehicle, similar to how he has privatised Thomson Medical back in 2010.